A comprehensive and integrated policy framework has been announced to strengthen the entire textile value chain—from fibre to fashion, from village industries to global markets.

The Union Budget announced a comprehensive Integrated Programme for the Textile Sector aimed at boosting competitiveness, self-reliance and employment. The programme spans the entire value chain, covering self-reliance in fibres through the National Fibre Scheme, modernisation of textile clusters and job creation under the Textile Expansion and Employment Scheme, and a unified National Handloom and Handicraft Programme to strengthen support for weavers and artisans. It also includes the Tex-Eco Initiative to promote sustainable and globally competitive textile manufacturing, and Samarth 2.0 to upgrade skilling through closer industry and academic collaboration.

To scale up manufacturing and value addition, the government announced the setting up of Mega Textile Parks in challenge mode with integrated infrastructure, alongside a renewed focus on technical textiles for industrial, medical, defence and infrastructure applications. The Mahatma Gandhi Gram Swaraj Initiative will further strengthen khadi, handloom and handicrafts through global market linkages, branding, improved skilling and quality enhancement, benefiting rural artisans and the ODOP programme.

On the exports and financing front, the Budget extended the export obligation period from six months to 12 months for textiles, leather and footwear manufactured using duty-free imported inputs, easing compliance and working capital pressures. To improve liquidity for textile MSMEs, measures were announced to strengthen TReDS, including mandatory adoption by CPSEs, credit guarantee support for invoice discounting, integration of GeM with TReDS, and the introduction of TReDS receivables as asset-backed securities to deepen secondary markets.